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Inheriting Family Owned Agency

Hey r/Insurance

I'm at a bit of a crossroads. I'm 25 and my mother owns a small insurance agency with 5 employees under her and a decent amount of clients. The business did approximately 375k in gross profit last year. When my grandfather owned it, I believe it was nearly triple that so I understand the potential.

However, I'm not really sure if I'm interested in owning a business, and right now I'm working towards a computer science degree. I also don't think I see my personality as being that of someone who could bring the business into the high levels of profit it used to be. Still, I can't help but think that I'm missing out on a great opportunity to inherit a good foundation of clients (a couple of which are very large companies with 500k/year premiums).

Would love to hear any thoughts you guys have!

10 comments
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If you don’t love it don’t do it. Running an agency is not easy and if it’s not your love you will hate yourself and sell your clients short.

If you don’t love it don’t do it. Do you want to be your own boss and employ others? Responsible for running a business and all the rewards and troubles that come with it?

If you have no knowledge of the industry and no sales experience this could be very challenging. Not impossible, just challenging.

You could always sell it.

Is it $375,000 of revenue or profit? If it's of profit you could probably support hiring someone to run the business and you just maintain ownership. That might be a way where you could still pursue the career path where you have interest.

What kind of agency? P and c? Life? Securities?

375? Great agents can do that in a year by themselves not including residuals.

Original Poster3 points·1 month ago

Commercial/personal p&c, life, workers comp, GL.

I realize 375 isn’t much for an agency. But a part of me sees the potential to make it much more than that.

Sounds like it is a agency that is good at some but master of none.

Stick to what it is good at. No need to try and do every thing.

That's why there are 5 people doing all these things all getting a decent salary like 50k x5 that's 250 plus your mom's pay should put you at 300k then there are fixed costs, rent phone electric supplies eats up that 75k easy.

You see the potential, the staff is there mainly because the agency is old and there's a shit ton of service work that's needed. Your mom probably doesn't even do anything update and reviews with clients because the book is business is so big. That's where the money is, new policies being opened not service work.

Sending you a PM, I went through this personally 12 years ago. At almost the exact same age, also a 3rd generation agency. And I never ever wanted to go into insurance growing up.

Is your mother sick, recently deceased, or ready to pass the business to you? If not, you've likely got some time to learn a few things about the business. Personally I opt for business owner and investor, for I love the flexibility I get with that route. I could see a computer science degree being quite beneficial with running a business of any type. Have you spoken with your Mom about some of her roles and responsibilities? She might have a plan in place for what happens in passing on the business. You might be tasked with keeping books and managing people more than anything. A solid foundation is a great start. You might have clients that will stay with your firm, but I wouldn't assume it's a turn key business. I've met many life agents that were duller than a sack of rocks, yet raked in 7 figures.

-6 points·1 month ago(0 children)
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